Macroeconomic Uncertainty, Precautionary Savings and the Current Account:
The relationship between current account developments and changes in the macroeconomic environment remains a key issue in open economy macroeconomics. This paper extends the standard intertemporal optimizing model of the current account to incorporate the effects of macroeconomic uncertainty on priv...
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
1992
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Schriftenreihe: | IMF Working Papers
Working Paper No. 92/72 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | The relationship between current account developments and changes in the macroeconomic environment remains a key issue in open economy macroeconomics. This paper extends the standard intertemporal optimizing model of the current account to incorporate the effects of macroeconomic uncertainty on private savings behavior. It is shown that the greater the uncertainty in national cash flow, defined as output less investment less government expenditure, the greater is the precautionary demand for savings and, other things equal, the larger is the current account surplus. Empirical support for the model is found using quarterly data from four large industrial countries |
Beschreibung: | 1 Online-Ressource (44 p) |
ISBN: | 1451959044 9781451959048 |
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spelling | Ostry, Jonathan David Verfasser aut Macroeconomic Uncertainty, Precautionary Savings and the Current Account Ostry, Jonathan David Washington, D.C International Monetary Fund 1992 1 Online-Ressource (44 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 92/72 The relationship between current account developments and changes in the macroeconomic environment remains a key issue in open economy macroeconomics. This paper extends the standard intertemporal optimizing model of the current account to incorporate the effects of macroeconomic uncertainty on private savings behavior. It is shown that the greater the uncertainty in national cash flow, defined as output less investment less government expenditure, the greater is the precautionary demand for savings and, other things equal, the larger is the current account surplus. Empirical support for the model is found using quarterly data from four large industrial countries Online-Ausg Ghosh, Atish R. Sonstige oth http://elibrary.imf.org/view/IMF001/04406-9781451959048/04406-9781451959048/04406-9781451959048.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Ostry, Jonathan David Macroeconomic Uncertainty, Precautionary Savings and the Current Account |
title | Macroeconomic Uncertainty, Precautionary Savings and the Current Account |
title_auth | Macroeconomic Uncertainty, Precautionary Savings and the Current Account |
title_exact_search | Macroeconomic Uncertainty, Precautionary Savings and the Current Account |
title_exact_search_txtP | Macroeconomic Uncertainty, Precautionary Savings and the Current Account |
title_full | Macroeconomic Uncertainty, Precautionary Savings and the Current Account Ostry, Jonathan David |
title_fullStr | Macroeconomic Uncertainty, Precautionary Savings and the Current Account Ostry, Jonathan David |
title_full_unstemmed | Macroeconomic Uncertainty, Precautionary Savings and the Current Account Ostry, Jonathan David |
title_short | Macroeconomic Uncertainty, Precautionary Savings and the Current Account |
title_sort | macroeconomic uncertainty precautionary savings and the current account |
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